A new debate is picking up speed in the XRP community – and it’s all about Ripple’s stablecoin, RLUSD. According to a thread posted by an XRP supporter known as “Stellar Expert,” there’s a growing concern that RLUSD might not just coexist with XRP but could actually replace it.
The theory goes like this: RLUSD is designed to work across multiple blockchains, including Ethereum and the XRP Ledger. That flexibility, according to Stellar Expert, could shift Ripple’s long-term focus away from XRP. If banks and institutions find RLUSD more convenient or more compliant with regulations, they might skip XRP altogether. That’s what has some holders worried.
He pointed to how Tether’s USDT originally launched on Bitcoin’s Omni layer but eventually found a better home on TRON. Why? Faster speeds and lower fees. Stellar Expert believes something similar could happen with RLUSD. If Ethereum or Solana ends up offering a better experience than the XRP Ledger, institutional clients might follow the smoother path.
And if that happens, what role would XRP have left to play?
That’s the big question at the center of this debate. RLUSD, as a stablecoin, doesn’t have the volatility of XRP. It’s programmable, works across chains, and is already being positioned by Ripple for heavy-duty use. So, if banks can use RLUSD for the same things XRP was built for – cross-border payments, settlements, liquidity – is there still a reason for XRP?
According to Stellar Expert, the answer could be “not really,” especially if Ripple starts prioritizing RLUSD in its product development. He warned the community not to assume that everything Ripple builds automatically benefits XRP. If RLUSD succeeds on its own, he believes XRP could slowly fade into the background – just like Omni did when Tether switched chains.
🚨 RLUSD: The Trojan Horse That Could Break XRP 🧵
— Stellar Expert (@StellarExpert) June 3, 2025
1. The RLUSD Launch Isn’t Just a Stablecoin Drop
Ripple’s new stablecoin, RLUSD, is set to go multi-chain — launching on Ethereum and XRP Ledger.
Sounds bullish? Maybe not for $XRP holders.
Here’s why RLUSD might be the biggest… pic.twitter.com/sUOreijfvV
But Ripple leadership sees it differently.
Ripple President Monica Long addressed this concern directly last October. She made it clear that RLUSD and XRP aren’t competing. Ripple uses both assets – depending on what the client wants. If a customer needs a stable asset, RLUSD makes sense. If they need speed and liquidity, XRP fits better. It’s a case-by-case decision.
Ripple CTO David Schwartz has echoed the same point multiple times. He says XRP isn’t just a bridge token. It plays a deeper role on the XRP Ledger, powering transactions and acting as a core utility asset. According to Schwartz, some clients still prefer XRP over stablecoins – and Ripple plans to keep supporting both.
There’s also the technical side of this argument. While Stellar Expert claimed Ethereum may offer better infrastructure, that may not be entirely accurate. Ethereum is still slower and more expensive than the XRP Ledger. That’s why TRON beat Ethereum in attracting USDT – and the XRP Ledger already delivers similar (or better) performance.
Another thing to consider: even if RLUSD grows in adoption, it could actually help XRP rather than hurt it. Right now, RLUSD mainly lives on the XRP Ledger. That means every transaction using the stablecoin requires XRP to pay fees. The more activity RLUSD generates, the more XRP gets burned as part of the network’s fee structure.
Read also: XRP Case Twist: SEC and Ripple Silent as Critical Court Deadline Nears
So ironically, RLUSD’s success could lead to more utility for XRP – not less.
Still, Stellar Expert’s concerns hit on a real fear among some XRP holders: that Ripple might shift its focus and leave XRP behind. While that doesn’t seem to be happening right now, it’s a reminder that in crypto, nothing is ever guaranteed.
For now, both assets appear to be working side by side. But the debate will likely continue as RLUSD grows and Ripple expands its partnerships. Whether the two assets stay balanced in Ripple’s ecosystem, or one eventually overtakes the other, will depend on the choices institutions and the company make in the coming years.
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